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Trump Prosecutors vs Fed Chair Powell... GOP Senator Tillis will oppose Powell's replacement
"It’s come to this. Sunday night brought news that the Federal Reserve was being served grand jury subpoenas threatening a criminal indictment, on the basis that Chairman Jerome Powell allegedly misled Congress last year in testimony on the ongoing refurbishment of the central bank’s buildings. It is a bizarre, dangerous and self-wounding approach that cannot help the US or its monetary system. The Fed’s governance isn’t simple, and its independence in its current form raises many valid issues about democratic accountability. But that doesn’t for a second justify using the Department of Justice and the law to bully the institution or a public servant who is about to leave his job in any case."
"What makes this so bizarre is that it is unnecessary. It’s a repetition of the tactic that the Trump administration has been using in trying to fire Lisa Cook as a Fed governor, on allegations of mortgage fraud (which look very flimsy). It’s unclear that prosecuting her would succeed, and the Supreme Court will hear arguments next week on whether the president has the right to fire her, given the central bank’s independent status. If the administration wants to set a precedent that it can push the Fed about, that’s the forum to do it."
"Powell leaves the chairmanship in May. He could carry on as a governor for another two years, but most assume he’ll resign. Pursuing prosecution might, if anything, make him more likely to stay around. The Fed’s regional presidencies will be renewed shortly, so the chance to remake the central bank’s governing body is gone for now. And the political optics are bad. If it can really be a criminal offense to spend too much refurbishing an historic Washington building, it might set a precedent for examining the recent demolition of the East Wing of the White House."
Yeah, nothing strategic or rational is happening here. This is a politically motivated attack that serves no purpose. Simply another example of trump's dictatorial ego getting in the way of anything productive.
Fascists send messages that anyone who does not cooperate fully with the authoritarian agenda will be targeted. The sheeple will fall into line. Good people will resist.
FWIW Saying I suspect he'll stay on as governor either to spite Donnie and/or for the good of the Fed/country/economy so that Donnie can't fill his seat juuuust yet.
"Ex-Fed officials and policymakers also sounded the alarm, warning that this action could damage the US economy. 'The reported criminal inquiry into Federal Reserve Chair Jay Powell is an unprecedented attempt to use prosecutorial attacks to undermine that independence,' a blunt statement signed by 13 former senior officials, including Greenspan, Bernanke and Yellen, said. 'This is how monetary policy is made in emerging markets with weak institutions, with highly negative consequences for inflation and the functioning of their economies more broadly.'"
"A string of analysts drew parallels to when price growth soared after the then president, Richard Nixon, put pressure on the Fed chair, Arthur Burns, to ease monetary policy to help smooth his 1972 election campaign."
Comments
"It’s come to this. Sunday night brought news that the Federal Reserve was being served grand jury subpoenas
threatening a criminal indictment, on the basis that Chairman Jerome Powell allegedly misled Congress
last year in testimony on the ongoing refurbishment of the central bank’s buildings.
It is a bizarre, dangerous and self-wounding approach that cannot help the US or its monetary system.
The Fed’s governance isn’t simple, and its independence in its current form raises many valid issues
about democratic accountability. But that doesn’t for a second justify using the Department of Justice
and the law to bully the institution or a public servant who is about to leave his job in any case."
"What makes this so bizarre is that it is unnecessary.
It’s a repetition of the tactic that the Trump administration has been using in trying to fire Lisa Cook
as a Fed governor, on allegations of mortgage fraud (which look very flimsy).
It’s unclear that prosecuting her would succeed, and the Supreme Court will hear arguments
next week on whether the president has the right to fire her, given the central bank’s independent status.
If the administration wants to set a precedent that it can push the Fed about, that’s the forum to do it."
"Powell leaves the chairmanship in May.
He could carry on as a governor for another two years, but most assume he’ll resign.
Pursuing prosecution might, if anything, make him more likely to stay around.
The Fed’s regional presidencies will be renewed shortly, so the chance to remake the central bank’s
governing body is gone for now. And the political optics are bad.
If it can really be a criminal offense to spend too much refurbishing an historic Washington building,
it might set a precedent for examining the recent demolition of the East Wing of the White House."
Fascists send messages that anyone who does not cooperate fully with the authoritarian agenda will be targeted. The sheeple will fall into line. Good people will resist.
Justice Department, Amna Nawaz discusses the developments with Janet Yellen.
She served as chair of the Federal Reserve Board from 2014 to 2018 and was Treasury Secretary
during the Biden administration."
https://www.pbs.org/newshour/show/trumps-intimidation-of-feds-leadership-threatens-economic-stability-yellen-says
could damage the US economy. 'The reported criminal inquiry into Federal Reserve Chair Jay Powell
is an unprecedented attempt to use prosecutorial attacks to undermine that independence,'
a blunt statement signed by 13 former senior officials, including Greenspan, Bernanke and Yellen, said.
'This is how monetary policy is made in emerging markets with weak institutions,
with highly negative consequences for inflation and the functioning of their economies more broadly.'"
"A string of analysts drew parallels to when price growth soared after the then president,
Richard Nixon, put pressure on the Fed chair, Arthur Burns, to ease monetary policy
to help smooth his 1972 election campaign."
https://www.theguardian.com/business/2026/jan/12/trump-condemn-federal-reserve-powell-investigation